TaxTMI 
TaxTMI 
2018 (4) TMI 1578
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....ncome Tax-II, Aaykar Bhawan, Indore Versus Smt. Gunvanti Nautamlal Sanghvi) Income Tax Appeal No.232/2017 (Principal Commissioner of Income Tax-II, Aaykar Bhawan, Indore Versus Smt. Gunvanti Nautamlal Sanghvi) Income Tax Appeal No.233/2017 (Principal Commissioner of Income Tax-II, Aaykar Bhawan, Indore Versus Smt. Gunvanti Nautamlal Sanghvi) Indore, Dated 01.02.2018 Ms. Veena Mandlik, learned counsel for the appellant. Heard on the question of admission. ORDER These three appeals under Section 260-A of the Income Tax Act, 1961 (herein after referred to as "the Act") have been filed by the appellant - Department against order dated 30.06.2017 (Annexure A/3) passed by the learned Income Tax Appellate Tribunal, Indore Bench....
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....the assessee by filing an appeal before the Commissioner of Income Tax (Appeals). 5. The respondent / assessee is supplying goods to Government Departments like PWD and IDA on the rate approved by the Madhya Pradesh Government through Nodal Agency of a M.P. Laghu Udyog Nigam. The stand of the Department that the business related to government supplies, no commission is required, MPLUN is merely facilitators and the actual buyers are Public Works Department and Indore Development Authority, and therefore, representatives of the assessee collects the orders from these departments and also collect due for the assessee - firm. 6. The learned Commissioner, considering the fact that prior to Assessment Year 2009-10, assessments of the assesse....
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....sessee not to recruit employees and avail services of representatives, which saved various fixed costs and was for a performance oriented were like various allowances of travelling, dearness allowance, P.F.E.S.I.C. liability and compliance thereof. It is submitted that the assessee has not debited any travelling expenses and same is given to agents, which justifies the payment of commission at higher rate. It was also submitted that the Government Agencies have confirmed the roles of their representatives in carrying out functions related to supply in their letters. The Ld. Counsel for the assessee further placed reliance in the case of CIT v. Pure Pharma, (2005) 144 Taxman 364 (MP) of Jurisdictional High Court, wherein the requirement of A....
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....tion framed by the AO to various Government Department like PWD and IDA was "whether they (Government Department) required the service of commission agents for making the supplies? If yes, the names and addresses of such commission agents. Therefore, the reply to this question had to be in negative as the commission agents were appointed by the assessee and not by the Government nodal agencies. We also note that the asessee is dealing in supplies of sign board etc. which required fixing site visit measurement etc. for which commission agents have rendered the service as these agents are having experience in work and expertise of government supply. Therefore, requirement of Representatives for doing such jobs cannot be denied. Further, PWD, ....
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....also been found that the commission was paid exclusively for business purposes only. 4. All these are findings of fact and no substantial question of law, as is required to be formulated for deciding the appeal, arises in the same. The Tribunal has also placed reliance on a judgment of the Delhi High Court reported in CIT vs. Electric Construction Equipment Co. Ltd., [1990] 182 ITR 510, wherein the Delhi High Court dealing with identical question has already decided the matter against the present appellant-Revenue." 9. On due consideration of the aforesaid, so also the fact that in earlier assessments the same was accepted by the Assessing Officer for Assessment Years 1992-93, 2007-08 and 2008-09, we are of the view that order dated 30.....